Correlation Between Atari SA and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both Atari SA and Affluent Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Atari SA and Affluent Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atari SA and Affluent Medical SAS, you can compare the effects of market volatilities on Atari SA and Affluent Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Atari SA with a short position of Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atari SA and Affluent Medical.
Diversification Opportunities for Atari SA and Affluent Medical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atari and Affluent is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Atari SA and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS and Atari SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Atari SA are associated (or correlated) with Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of Atari SA i.e., Atari SA and Affluent Medical go up and down completely randomly.
Pair Corralation between Atari SA and Affluent Medical
Assuming the 90 days trading horizon Atari SA is expected to generate 1.37 times less return on investment than Affluent Medical. But when comparing it to its historical volatility, Atari SA is 1.29 times less risky than Affluent Medical. It trades about 0.01 of its potential returns per unit of risk. Affluent Medical SAS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 159.00 in Affluent Medical SAS on November 2, 2024 and sell it today you would lose (21.00) from holding Affluent Medical SAS or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atari SA vs. Affluent Medical SAS
Performance |
| Timeline |
| Atari SA |
| Affluent Medical SAS |
Atari SA and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atari SA and Affluent Medical
The main advantage of trading using opposite Atari SA and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atari SA position performs unexpectedly, Affluent Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Affluent Medical will offset losses from the drop in Affluent Medical's long position.| Atari SA vs. Nacon Sa | Atari SA vs. Solutions 30 SE | Atari SA vs. OVH Groupe SAS | Atari SA vs. GECI International SA |
| Affluent Medical vs. Aramis SAS | Affluent Medical vs. Spartoo SAS | Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Omer Decugis Cie |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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